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Google and AES Sign Agreements for Co-Located Generation and Data Center in Texas

LCG, February 24, 2026--The AES Corporation (AES) and Google today announced agreements for clean power generation that will be co-located with a new Google data center in Wilbarger County, Texas. The agreements include a 20-year Power Purchase Agreements (PPA) for co-located power generation. These coordinated energy projects and powered land will enable Google to rapidly expand its operations to meet demand for core services, while AES will expand its power generation portfolio.

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Amazon Announces Plans to Invest $12 Billion in Data Center Campuses in Louisiana

LCG, February 23, 2026--Amazon today announced plans to invest $12 billion to develop and construct state-of-the-art data center campuses in northwest Louisiana that will support cloud computing technologies. Amazon is partnering with STACK Infrastructure, the developer and owner of the campuses, to lead the construction and development of the data center facilities. Amazon has already invested in solar energy projects in Louisiana, bringing up to 200 MW of new carbon-free energy onto the grid.

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Industry News

FERC to Review New Filings for Market-Based Rates

LCG, August 10, 2004--Last month, the Federal Energy Regulatory Commission (FERC) issued its Order on Rehearing that confirmed and clarified the new methodology to assess generation market power. For American Electric Power (AEP), Southern Company, and Entergy Corp., yesterday was the deadline to file the market power analysis using the new rules. AEP indicates that the company passes both market screens in the control areas to which AEP is directly connected, while Southern and Entergy both stated in filings that they will fail portions of the new test.

In the Order on Rehearing, the FERC stated, "Market-based rate authority is not a right. The Commission may grant such authority under the FPA only to applicants who demonstrably lack market power." Now the FERC must review the filings and determine how to proceed. At risk is the ability of each utility to sell wholesale electricity at market-based rates, rather than the incremental cost of generation.

The two screening tests analyze a market participant's total amount of uncommitted capacity available for wholesale sales in a market. The first screen is the pivotal supplier analysis, which examines a participant's generation market power during the peak hour of the year, and is based on a control areas annual peak demand. The hours leading up to that point are the most likely time that a participant will be a pivotal supplier.

The second screen is the wholesale market share analysis that examines the market share of a participant in all seasons. Both screens consider native load obligations, operating reserve requirements and other commitments of the participant's. If applicants pass both indicative screens, it is presumed that generation market power does not exist.

If the participant fails either screen, it is presumed that the generation market power exists, and the participant can then rebut the presumption with additional analyses. Alternatively, a participant may accept the presumption of market power and go directly to mitigation or inform the FERC it will adopt the default cost-base rates or propose other cost-base rates.

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